Page 296 - Motor Insurance Ebook IC 72

The Insurance Times

Q.15. What are the defences available to an Insurer in
Third Party Claims?

Ans: Third party liability claims form a considerable part of
the overall claims of insurers and are a heavy financial
burden on the balance sheets. In addition settlement of
these claims taken a few years as these are settled
through the special courts called the Motor Accidents
Claims Tribunal (MACT).

A regular scrutiny of the outstanding claims records for
this category is essential for review and updation of the
outstanding provisions and the follow up for speedy
disposal. This is very clear that Insurers have limited
defences as provided in the Motor Vehicle Act, 1988
that too are subject to proof.

The right of an insurer to be made a party to the action
by the victim of road accident is created by a specific
statute i.e. Motor Vehicle Act, 1988. Apart from this
statutory right, the insurer has no right to be made a
party to the action

It follows, therefore, that an insurer can take defences
only on the grounds enumerated in sub-section (2) of
Sec. 149 of the 1998 Act. Clause (a) of the said sub
section provides of specified conditions of the policy as
given in this clause and in such a case onus lies upon

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 296

Copyright@ The Insurance Times. 09883398055 / 09883380339